Compute the amount of net income and net income as a percentage of sales of Incorporation LS.

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Chapter 14, Problem 7BE

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Compute the amount of net income and net income as a percentage of sales of Incorporation LS.

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Here are comparative balance sheets for Concord Company. CONCORD COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $81,760 $24,640 Accounts receivable 97,440 85,120 Inventories 190,400 213,920 Land 80,640 112,000 Equipment 291,200 224,000 Accumulated depreciation (73,920) (35,840) Total $667,520 $623,840 Liabilities and Stockholders' Equity Accounts payable $41,440 $52,640 Bonds payable 168,000 235,200 Common stock ($1 par) 241,920 194,880 Retained earnings 216,160 141,120 Total $667,520 $623,840 Additional information: 1. Net income for 2022 was $112,000. 2. Cash dividends of $36,960 were declared and paid. 3. Bonds payable amounting to $67,200 were redeemed for cash $67,200. 4. Common stock was issued for $47,040 cash. 5. Equipment that cost $56,000 and had a book value of $33,600 was sold for $40,320 during 2022; land was sold at cost.